hunter centre for entrepreneurship @ strathclyde

1. hunter centre for entrepreneurship @ strathclyde Global Entrepreneurship Monitor Scotland2004 Jonathan Levie Sara Carter Catherine A.C. Currie

2. GEM Research Questions • Does the level of entrepreneurial activity vary between countries? By how much? • What makes a country entrepreneurial? • What are appropriate policies for enhancing entrepreneurial activity?

3. GEM Scotland Aims • How Scotland compares to the UK and other small high income nations? • Which factors account for Scotland's level of entrepreneurial activity? • What are the implications for public policy?

4. Representative sample: 2000+ adults per nation Standardised cross-national data: 34 nations Total Entrepreneurial Activity (TEA) GEM2004 Method & Measures % of adults running a new business (owner/managers of businesses < 3½ yrs old) • % of adults actively starting a business • (nascent entrepreneurship rate) + • =

5. 2004 - Summary Highlights • Scottish TEA rate stable at 5.1% (2003: 5.5%) • Attitudes have improved over 2000 – 2004, particularly among women • Scottish and UK female TEA rates now equal • In-migrants and immigrants 4 times more likely to start new businesses than life-long residents • Remote regions have relatively high TEA rates • Scottish informal investment rate matched the UK rate (1.3%) but still less than half the rate for small high income nations • Launch of Fresh Talent initiative and the Social Entrepreneurs Fund

6. How Scotland Compares TEA rates for 34 sovereign nations and Scotland New Zealand Israel Denmark Norway Finland Ireland United Kingdom Scotland

7. Male TEA rate is twice female TEA rate and more volatile from year to year. Entrepreneurship by Gender Overall trend is upward but slow

8. Entrepreneurial capacity (i.e. perceived knowledge, skills and experience) has improved… Attitudes to entrepreneurship by gender Male Female …although significantly fewer females agreed with the statement

9. In-migrants and immigrants delivered double the expected number of entrepreneurs… Origin and entrepreneurship in Scotland …while life-long residents delivered half the expected number of entrepreneurs

10. Location of entrepreneurship Significant gender difference in TEA rates in urban areas… … but no gender difference in TEA rates in remote areas

11. Origin and location of entrepreneurship People born outside Scotland had a significantly higher TEA rate in urban and remote areas

12. Informal Investment Rate Scottish informal investment rate same as UK rate (1.3%) but half that of small high income nations

13. Investment in new business Informal investment versus venture capital *Source: Harrison & Don, 2004

14. Policy Implications • In-migrants make a major contribution to new business activity: scope for increasing TEA rate through Fresh Talent Initiative • Reduced capitalisation and increased self-funding of new businesses suggests a capital gap remains • Widen Business Start-up Scheme to over 30s • Social Entrepreneurs Fund should help to spur “thinkers” into “doers” • Scottish Enterprise assists one third of new businesses: is this sufficient?

16. Attitudes to entrepreneurship by gender Perception of opportunity to start a business in the next 6 months has increased… Male Female …with female levels recovering to 2000 rates

17. In-migrants and TEA In-migrants deliver twice the rate of TEA given their proportion of the sample across urban, accessible and remote

18. Steady rise in the number of women entering business services Types of business being started by gender